Congress has closed the books on a another dramatic year in American politics with no real accomplishments. Among many lingering questions is the future of wind power subsidies. Introduced in the early 1990’s, government subsidies for wind power have played a major role in the expansion of the young industry. The current subsides are going to expire at the end of 2012 with no guarantee they will be renewed. This has left the industry in an uncertain state.Along with the government subsidies that provide wind electricity producers 2.2cents per kWh many states have passed renewable energy mandates which required that a certain amount of electricity come from renewable sources. All of this has allowed the wind industry and wind technologies to thrived in recent years. Wind is now at the point where it is approaching so-called "cost parity" with more traditional methods of generating electricity, like coal and natural gas.However, the growing national debt could sideline or completely end government support for the entire renewable energy industry. Many wonder if wind technology has advanced sufficiently to remain cost competitive with other electricity generation methods. In a free market without government subsidies or mandates, the one thing that trumps all is cost.While environmental issues are important, there is much more to consider for survival in an open marketplace. A major challenge for the wind industry is continued low production costs even if government subsidies and mandates decrease or go away completely. In the wind industry’s favor is the fact that fossil fueled power has consistently risen with time in cost . If renewables continue to go down in price the two will ultimately intersect.However, developments in the natural gas industry in recent years add a little more of a challenge to renewable electricity in competing on cost. Since 2008, new natural gas drilling technology advancements have triggered a dramatic decline in electricity rates in Texas. Texas, along with a number of other states, gets a significant portion of its power from natural gas plants. This makes it even more difficult for wind to compete on a cost basis for at least the next several years.See More

2011 was a challenging year for the operators of the Texas electricity grid. 2012, however, isn’t likely to be any easier. This according to ERCOT who holds the responsibility of insuring the reliability of the Texas grid. There are a large number of power plants that are scheduled to be decommissioned over the coming months and still others that will be switched on later than initially expected.Texas consumers have already felt the impact of a loss in electricity capacity. In 2011 significant electricity capacity was lost due to plant closings. The problem was made worse when freezing temperatures caused mechanical failure at several power stations. Texas had to take the unusual step of importing electricity from the Mexican electricity grid.ERCOT is proactively reaching out to electricity operators within the Texas grid and asking them to confirm the accuracy of expected go-live dates for projects that will begin contributing electricity to the grid. Texas will have to monitor their power reserve margins, more closely than ever.The challenges being faced by ERCOT right now are a complex mix of unprecedented weather behavior, economic pressures, and a set of new environmental protection agency rules that could lead to existing power plants being turned off because they will not be compliant with the new rules. The sharp drop in Texas electricity rates in recent years has lead to less money being invested in new production.2011 will likely be remembered in Texas for weather extremes the likes of which have not been seen in living memory. The weather challenges faced by the Texas electricity grid started early in the year as February saw an ice storm that effectively shut down transportation and kept Texans in their homes where they turned on their heaters and demanded record electricity output from the grid. The record demand along with weather-related failures at certain key points in the power generation infrastructure forced ERCOT to implement controlled blackouts.This was followed later in the year by record high temperatures that again taxed the grid to a straining point. In addition to the extreme temperatures, 2011 is also notable for the continuation of an historic drought in Texas as wells as unrelenting wildfires.The timing of the harsh onslaught of natural disasters is somewhat ironic considering that while dealing with these the Texas electricity system is also beginning to realize the impact of recent new EPA rules. The true impact of the new rules has been debated for a while but the time is rapidly approaching when the theoretical impact is giving way to real life impact as electricity plants that are unable to meet the new rules are closing down at precisely the time when Texas is struggling to generate enough electricity to meet demand. The impact of the new rules is not being felt just in Texas. The North American Electric Reliability Corporation (NERC), the organization in charge of maintaining the reliability of the North American grid, is lobbying the Obama administration for more time to comply with the new regulations in order to prevent possible electricity disruptions.See More

2011 was a challenging year for the operators of the Texas electricity grid. 2012, however, isn’t likely to be any easier. This according to ERCOT who holds the responsibility of insuring the reliability of the Texas grid. There are a large number of power plants that are scheduled to be decommissioned over the coming months and still others that will be switched on later than initially expected.Texas consumers have already felt the impact of a loss in electricity capacity. In 2011 significant electricity capacity was lost due to plant closings. The problem was made worse when freezing temperatures caused mechanical failure at several power stations. Texas had to take the unusual step of importing electricity from the Mexican electricity grid.ERCOT is proactively reaching out to electricity operators within the Texas grid and asking them to confirm the accuracy of expected go-live dates for projects that will begin contributing electricity to the grid. Texas will have to monitor their power reserve margins, more closely than ever.The challenges being faced by ERCOT right now are a complex mix of unprecedented weather behavior, economic pressures, and a set of new environmental protection agency rules that could lead to existing power plants being turned off because they will not be compliant with the new rules. The sharp drop in Texas electricity rates in recent years has lead to less money being invested in new production.2011 will likely be remembered in Texas for weather extremes the likes of which have not been seen in living memory. The weather challenges faced by the Texas electricity grid started early in the year as February saw an ice storm that effectively shut down transportation and kept Texans in their homes where they turned on their heaters and demanded record electricity output from the grid. The record demand along with weather-related failures at certain key points in the power generation infrastructure forced ERCOT to implement controlled blackouts.This was followed later in the year by record high temperatures that again taxed the grid to a straining point. In addition to the extreme temperatures, 2011 is also notable for the continuation of an historic drought in Texas as wells as unrelenting wildfires.The timing of the harsh onslaught of natural disasters is somewhat ironic considering that while dealing with these the Texas electricity system is also beginning to realize the impact of recent new EPA rules. The true impact of the new rules has been debated for a while but the time is rapidly approaching when the theoretical impact is giving way to real life impact as electricity plants that are unable to meet the new rules are closing down at precisely the time when Texas is struggling to generate enough electricity to meet demand. The impact of the new rules is not being felt just in Texas. The North American Electric Reliability Corporation (NERC), the organization in charge of maintaining the reliability of the North American grid, is lobbying the Obama administration for more time to comply with the new regulations in order to prevent possible electricity disruptions.See More

]]>Tue, 03 Jan 2012 03:54:37 +000000000000005c9d3d0000000009e33074d34e060e147a84a2Holbert Janson is now a member of Home Energy Proshttps://homeenergypros.lbl.gov/profile/HolbertJanson?xg_source=activity
Holbert Janson is now a member of Home Energy Pros]]>Mon, 19 Dec 2011 06:31:54 +0000